Is blockchain security required only by the banking and finance sector? There is no doubt that the blockchain technology is still in its nascent stage but in spite of that this technology offers adequate security to make domestic and cross-border payments safely and quickly.
In fact, its need and implementation is not restricted to banking and financial sectors.
Blockchain security and technology is extremely versatile. It is not only used to maintain the records of the financial transactions but also for several other things such as:
- Storing medical records
- Storing concluding binding agreements
- Storing personal credit records
- Tracking the flow of goods in transit
- Tracking the provenance of artwork
- Verifying payments through a supply chain and more.
Therefore, blockchain technology, which initially started as the underlying technology to make Bitcoin transactions almost a decade back, now has grown and become one of the most significant and promising technologies for extenuating cyber security.
In this digital age where data breaches and hacks are common and continue to plague the organizations all over the world, blockchain security is essential.
This enables a lot of different companies to safeguard their data and operations and in the process save a lot of money by preventing them from incurring heavy losses in business.
If you are thinking on the lines of implementing blockchain security in your business, you should first know about the technology to leverage blockchain security.
This article will help you a great deal in that respect.
Is Blockchain Security Required Only by the Banking and Finance Sector?
Inadequate cyber security will not only affect the banking and finance industry but could also impact others such as law enforcement, accounts, healthcare, and a lot of other sectors.
In short, the future of blockchain is near when it comes to cyber security.
Blockchain technology is a virtual ledger or Digital Ledger Technology that has the ability to verify and record a high volume of digital transactions quickly, efficiently, and safely.
All transaction data is maintained in a verifiable and transparent register.
There is no need for any central supervision for it to operate since it is decentralized.
Each block of data is connected with the previous one in the chain with a hash after proper verification and validation by all the participants on the chain.
Once it is added to the chain, the records are immutable since these are secured with digital signatures and encryption.
Any forced changes made in one block will need changing all preceding and subsequent blocks along with it.
This makes it resistant to fraud and hacks to a great extent. It also eliminates the chances of performing any fraudulent activity on the chain such as duplication of transactional records.
This is what is wanted when companies transfer funds or receive payments and that is why blockchain is spreading across a wide range of industries.
Its use cases seem to be endless as it is, but now, with the influx of the metaverse, the significance of the blockchain technology will be even more.
It offers greater veracity to the digital information ecosystem.
Future of Blockchain Security
Looking back at a decade from now, blockchain started its journey simply being a supporting technology for Bitcoin, a disruptive product.
But now, in just over ten years’ time the use and popularity of blockchain has expanded unimaginably and has grown into a promising technology to ensure cyber security.
In this digital age, all data and info are stored online and are shared among known and unknown people through the internet.
This is the case for all businesses and organizations and therefore they all need to depend on different digital means.
Therefore, industries are on the lookout for new technologies to improve network security and data privacy and as of now blockchain security seems to be leading the way.
Now with blockchain technology they can conduct transactions and at the same time record the transaction history easily and safely which will be immutable.
This has enabled them to ensure that the primary and vital needs of reliability and data security are met.
Now the businesses do not have to rely on cloud storage technology that is also evolving continuously to transfer data online with a constant fear of security protocols being lapsed.
Therefore, with a more transparent and decentralized blockchain security, there is no risk of data and sensitive information being exposed to the malicious actors anymore.
In addition to that, there are also a few other specific benefits offered by blockchain security.
It offers a decentralization storage system in which data is stored across several computers participating on the chain which does not give the hackers an easy access to the system as a centralized storage system.
In fact, they have to attack or compromise the entire system which makes it quite a complex and cumbersome process.
Blockchain security also protects the IoT or edge devices such as mobile phones, routers, cameras, and switches which also offer an entry point to the hackers, if compromised.
These connected devices of the system can make their own security decisions because the blockchain technology analyzes the network and forms a consensus to ensure that there are no suspicious activities on the chain.
Therefore, each of these devices acts as another additional hurdle for the hacker that they need to overcome to get into the system.
Messaging communication is also secured by blockchain security.
Today, messages are sent by businesses through multiple digital channels and use different formats for it.
This has improved flexibility in collaboration and production but also has increased the risks in it.
Blockchain technology offers the benefits of E2EE or End-To-End Encryption that encrypts information that prevent anyone else apart from those engaged in the communication from reading the messages.
This means that the app developer, internet service providers, and even the government cannot read the messages.
With all these benefits offered by blockchain security, its future is quite secure and is not going to go anywhere sooner or later.
Industries That Need Blockchain Security
A lot of companies have adopted blockchain security for their data transmission and fund transfer needs.
Here is the list of those major companies for your knowledge.
Banking and blockchain security seems to go hand in hand.
It is vital for all the financial institutions all over the world to ensure their clients that their funds will be safe during transit and otherwise.
This decentralized technology offers multi-layered security to mitigate the risks of hacks and provide assurance to the customers apart from expediting the transaction speed.
Decentralized blockchain security has also benefited the healthcare industry a great deal in preventing cyber attacks.
This protects the patient and personal information that are critical for proper diagnosis and treatment.
Moreover, if the system is hacked, it may result in the hospitals and healthcare companies losing millions of dollars.
Safeguarding and securing the defense industry is most efficiently done by blockchain security today.
As it is, the defense industry uses a lot of different technologies including GPS and internet, and blockchain is the recent addition.
This technology has helped the aerospace companies, defense contractors and others who hold critical data of different missions and have multifaceted supply chains to manage.
Blockchain security keeps all data secure.
Governments and public sector:
The efficiency of the governments and public sector organizations has increased manifolds with the use of blockchain technology.
This technology removes the inherent risks of the centralized systems and also makes the organizations much more agile.
The cost-effective structures protect the critical data and also reduce the chances of corruption and manipulation which increases the trust of the society on governmental civic systems, land registration and payments process.
This will reduce time taken for settlements and operating costs and will increase audit-ability and transparency.
The blockchain technology benefits crowdfunding by naturally aligning the process and also helps in legal compliance of the ICOs by bringing the digital assets to the mainstream.
Blockchain ensures security and transparency in transactions and also helps the crypto exchanges to function without the need of intermediaries.
This reduces chances of cyber attacks, cost and time of making a transaction. It also eliminates corruption and human error.
Wills and inheritances:
Wills and inheritances are very critical documents where accuracy and security are prime requirements.
Use of blockchain establishes that with smart contracts solutions.
This helps in proving the genuineness of a will and whether or not the intentions of the deceased support the inheritances.
The technology helps in identifying factual information and offers verifiable data to dismiss claims without merit.
Just like banking, accountants are also finding using blockchain security very useful for their job.
This technology helps them to protect personal and business information and get variable data for accurate bookkeeping.
It is also easy for them to track the data processed by them in real time.
And, by combining Artificial Intelligence, it also helps them to automate the process that reduces chances of frauds and human error.
Loans and credit:
Credit reporting is the primary tool based on which loans are underwritten by traditional banks and lenders.
These credit reports are typically provided by three major credit agencies namely, Experian, TransUnion, and Equifax.
These agencies follow centralized systems that are vulnerable. Using blockchain security will make the process much cheaper, more secure and efficient.
Banks can check the historical payments of the borrower from the cryptographically secure decentralized registry before giving the loan.
Using blockchain applications helps the insurance industry to improve their operational efficiency.
This will also enable them to offer better customer service at a lower cost and higher speed.
Claims can be settled quickly and properly by using the immutable and verifiable data.
Blockchain technology helps the people who are making charitable donations to track their money.
They can see when the money arrived and where it is going and to whose hands.
Therefore, blockchain technology improves security, transparency, and accountability apart from increasing organizational efficiency so that the money reaches where it is meant to.
Blockchain technology helps the automotive manufacturing industry to keep a track of their physical assets and track ownership to identify counterfeit, make proper automotive targeted recalls and more.
Car leasing and sales:
Blockchain technology can change the fragmented process of buying, selling, or leasing a vehicle.
It will streamline the entire process and may also lead to a simple and fast ‘click, sign, and drive’ type of service.
Cab hiring apps such as Uber and Lyft use algorithms to dictate their charge and manage the fleet of drivers which is made much more dynamic by blockchain technology.
This Distributed Ledger technology will create a more value oriented and user driven marketplace.
The transportation system feels the pressure with the growth of cities that they need to cover.
This makes their services costlier and less efficient.
Using blockchain technology will help the transportation companies to find out exactly how the citizens are using the public transportation options.
It can also store vehicle timeliness, efficiency and more that will help the transportation companies to streamline their process to make it more functional and optimize the routes and schedules.
Shipping trucks can be tracked easily and more efficiently by using blockchain technology.
It will help the industry to improve their transaction shipment service, fleet management, and protect assets.
It can also track routes and optimize them by matching the items, especially food items, and the truckers to deliver it on time before the food gets contaminated.
It will also help in checking the storage conditions and delays.
A lot of data is involved in air travel right from booking air tickets and flights to maintaining records of names, birthdays, immigration details, credit card numbers, destinations, and lots more.
Using blockchain technology will secure all data and help in reconciling them when needed.
Use of smart contracts to offer digital token will offer more verified customer experiences.
It will also help in maintaining accurate logs for aircraft maintenance, spare parts, and reduce downtime.
Hotels lose a chunk of their profits having to pay commissions to the third parties.
Larger the hotel the higher the rate of commission paid.
With blockchain technology booking and selling processes will be more efficient allowing hotels to earn more.
A blockchain network will act as a public ledger and therefore there will be no need for a central hub to communicate between a large number of IoT devices scattered all over the premises.
The communication will be autonomous and will help in managing bugs, software updates, and energy.
3D printing is an extremely technology-driven process which needs digital files to be transmitted fast.
Using blockchain technology will help in improving the process and make it easier to track and share files.
It will eliminate security vulnerabilities and protect intellectual property from being stolen. It will streamline the process and help the 3D printing sectors to grow.
Construction, architecture, and building:
This is a highly regulated sector that involves a wide variety of people. Projects are also very complex to handle and ensure high quality.
Using blockchain will reduce time and ensure better quality by streamlining the process and making tracking the progress much easier.
It will also ensure that the construction materials are good and sourced from reliable suppliers and smart contracts will ensure timely payments.
Blockchain technology will instill more transparency in real estate dealings by helping during and after transactions reducing the need for huge amounts of paperwork.
It will also eliminate the chances of fraud and errors in the records.
It will reduce cost and improve efficiency in tracking and transferring records, land titles, liens, property deeds, and more.
In energy management blockchain security will ensure more efficiency and will also help in the energy exchange process.
It will also help in tracking the source to ensure that the energy is clean apart from helping in finding and accessing renewable energy.
Recycling can be laborious and confusing and often not rewarding.
Using a blockchain solution will help to make the process simpler and optimize the systems in place by tracking their recycling activities in a much better way.
Oil and gas:
Blockchain technology will help to automate the process of validating and enforcing contracts between multiple parties in the supply chain.
It will also help in tracking production quantities, transactions, different stages of production, time.
Vaccine distribution and monitoring:
Blockchain technology will offer real-time visibility and ensure faster response by the supply chain to ensure that vaccine distribution during a pandemic situation is not disrupted.
It will help in monitoring the process, identifying the batches of vaccines, and even during recall due to an adverse event.
Vaccine certificates can also be verified easily and quickly when one travels across borders.
Genomics researchers use huge datasets to perform computations. If the system is centralized or is cloud-based, there is a chance of a single point of failure.
This will result in data breach and will even jeopardize sensitive information.
Using blockchain technology will minimize these risks along with the one-entity control which may be detrimental.
In healthcare, the backend is very slow, expensive and complex.
Blockchain can help in improving it altogether which will help in the claims management process significantly with all data available readily.
Pharma is not a fast moving industry because there is a lot of red tape involving FDA approvals, clinical trials and more that slows down the process even if innovation and problem solving is fast.
Blockchain technology will make it more efficient and fast as well as ensure smarter and better medical data security and safer production. Any errors can be traced easily.
Research and clinical trials:
Blockchain can also help in research and clinical trials prior to the treatment phase.
It will help in coordinating with several websites and stakeholders as well as ensure better management of huge amounts of sensitive data collected from multiple sources.
During elections it is important to check the identity of voters, secure recordkeeping, track votes, and even determine the winner.
Blockchain can prove to be a foundational infrastructure for all these and will minimize the chances of recounts since foul play or frauds will be taken out of the equation.
Blockchain technology can also help in tracking gun ownership, source of the weapon, and usage. This will prevent illegal gun purchase.
Blockchain can help in ensuring that the chain of evidence is valid and trusted.
Since records on a blockchain are immutable, it adds another layer of security to the evidence handling process.
It helps in police investigation for doubtful activity as well by flagging specific transaction patterns.
Blockchain technology used in the US Postal Service also helps in improving their service and operations by creating a better tracking system.
This will reduce costs of operation as well as save a lot of time for the postal workers.
The adoption of blockchain technology will simplify the public assistance system by removing bureaucracy while sending relief and other humanitarian assistance to the refugees.
It can be sent to them directly by using biometric authentication and blockchain technologies for verification and registration.
The retail system is benefited immensely by blockchain technology by decentralizing trust in the marketplace.
It will track products, connect manufacturers and sellers on different platforms and marketplaces.
It will connect brands, retailers, consumers, third-party sellers, and content providers sans a middleman.
Blockchain technology will transform e-commerce by reducing transaction costs, improving security, traceability, tracking contract details, flow of goods and proof of delivery, and managing supplier relationships.
Food and beverage:
There can be a lot of slip-ups in this industry and blockchain technology can help the manufacturers, distributors, and the entire food and beverage industry avoid such mishaps which include food contamination and supplying harmful items.
Blockchain technology can disrupt cannabis with its secure and transparent record keeping.
It will help in tracking the production, distribution, safety and regulatory acquiescence, and sale of cannabis.
Retailers that offer gift cards and loyalty programs will get help from blockchain technology to make those systems more secure and cheaper since there will be no middle man involved in issuing and sales.
The unique verification ability of blockchain will reduce fraud and prevent unlawful users from obtaining stolen accounts.
Crops and agriculture:
Blockchain technology also comes with potential to aid the agriculture space with product-specific logistics across the agriculture supply chain.
It can increase the level of trust among merchants, promote healthy competition and digitize everything from buying, selling, and storage. Relationships between farmers and stock traders will be improved with new avenues for farmers opened.
Much similar to the benefits offered to agriculture, blockchain technology can also help in animal husbandry with improved traceability, sustainability, food safety, breeding and raising livestock, synthesizing animal history, maintaining genomic profile of animals along with the food they eat and their medical history.
Fishing industry will be more sustainable, legally compliant, and eco-friendly with the use of blockchain technology.
It will help in tracking fishing boats, quality of fishing nets, and even track the fish.
Logging and timber:
Blockchain tech can help the US Endowment for Forestry and Communities and other organizations to ensure security in the global wood supply chain.
Blockchain tech can transform the mining industry by coordinating and cooperating with the intermediaries.
It ensures data transparency with its paper-less process and mitigates chances of frauds and unsafe working conditions.
It will improve traceability with proper tracking of minerals from the quarry to the factory and collaboration in the supply chain.
The telecommunications sector uses a lot of data and blockchain can help in managing them all.
It can track the data usage of every person each month, the hours of videos watched, and even what type of phone people use and where they go.
Blockchain technology is integrated into the messaging apps to enhance its crypto-related capabilities.
With P2P messaging, the tech allows preserving privacy and security during the process.
Blockchain tech has several applications in the publishing industry.
It can help in rights management, piracy prevention, breaking in of unrecognized writers, and promote collaboration among authors, translators, editors, and publishers.
With immutable records, it can also preserve integrity of news and also track their source as well as counter censorship.
Education and academia:
Use of blockchain in this industry will streamline and simplify the process providing verifiable and universally recognized data and academic credentials.
It will help in case-by-case checking and verification to minimize fraudulent claims of educational credits that are not earned legally.
Blockchain tech will help in tracking and managing funds, books and archives in the libraries to improve their services and even help in managing digital rights.
Music, entertainment rights and IP:
Blockchain technology will help in content sharing by the creators making it fairer and quicker by using smart contracts.
It will preserve licensing agreements and even help in making money from the listeners by partnering with a crypto exchange network.
The cost of video traffic will be reduced dramatically by blockchain technology with decentralized video storage and encoding.
The video distribution ecosystem will be improved with the users allowed to share live videos directly with their peers as well.
The online gaming industry has experienced expansive growth and blockchain technology helps in offering an even gaming field.
Rewards and assets can be exchanged securely and quickly using blockchain technology without needing any intermediaries.
Social media content:
Blockchain tech can allow creators to make money using news ways from social media.
You can now create art or coins or share content and get rewarded while staying anonymous.
Blockchain tech allows sports corporations and management agencies to invest in athletes and earn returns using cyber currency safely and securely.
Online gambling also uses blockchain tech to ensure transparency and build trust between customers and businesses.
It ensures fair games, proper maintenance of records, trustless betting, and fair winning. It makes gambling more reliable and accessible universally.
Blockchain technology and tokenization helps the art market making it universally accessible and also lower transaction costs.
Auction can be run in a better and safer way by using smart contracts on a blockchain network.
The public registry can track histories, archival materials and provenance.
Blockchain tech can help the photographers to get royalties for their work by registering them on the decentralized photography platform and license their products via smart contracts and get paid directly.
It can also store copyright and licensing information.
Cloud computing and storage:
Cloud services can be more efficient and decentralized via blockchain technology.
It will increase security, connectivity, computational power and overcome all limitations associated with cloud exchanges such as cyber attacks and fraudulent transactions.
Internet identity and DNS:
Identity management can be improved by using blockchain technology increasing interoperability and issuing credentials for the users to prove their true identities with a streamlined verification process which will enhance personal privacy in the process.
Advertising on the internet can be easier and more legally compliant when blockchain technology is used.
Better verifiable data and direct listing will ensure better lead generation.
Verifying employment histories can be easier and quicker when blockchain technology is used to conduct background checks.
It will also allow the HR to streamline the vetting process and expedite the hiring process especially for short term recruitment.
People can find jobs easily on the fly and even get paid in crypto.
Business and corporate governance:
Using blockchain for smart contracts will help businesses to improve their governance.
It will make business accounting more compliant and transparent with verifiable transactions.
It will also help in collaborative proposal management and voting by proxy and ESG or Environmental, Social, and (Corporate) Governance reporting.
Blockchain can also help in forecasting with more holistic research and analysis by using blockchain technology to get better insights.
Blockchain security is a quite new technology but is adopted already in many industries and areas beyond crypto.
With its ability to offer wide range security solutions these are some of the industry sectors that are benefited by blockchain security.